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RACE - Ferrari


Phaceliacapital

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By the way, I hate the new sub $100k Maserati.  They are everywhere on the street on NYC lately.  I can say that the Maserati brand has already been cheapened.  In summary, I think luxury brands are great franchises.  But I think the urge to increase volume or go down market can often spell the doom of the franchise.           

 

I wasn't aware that Maserati had a sub $100K version now.  This explains why I see them all the time now in New Hampshire.  Every once in a great while I'll see a Ferrari or Lamborghini, but I'll see a Maserati on the streets at least weekly if not more lately. It has definitely effected how I view the brand.  It is more like seeing a Model S was two years ago (I see these daily now) than it is like seeing a Ferrari.

 

 

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Ferrari doesn't make engines for Alfa Romeo, only Maserati.

 

 

Ferrari is now making engines for Alfa. The first will be for the Giulia Quadrifoglio. I'd imagine they'll try the Ferrari engines as an M or AMG type class in the Alfa lineup.

 

Source? No mention in the prospectus of any such commerical agreement. I have seen the news articles, but note that "Ferrari-derived" is not necessarily the same as "manufactured and sold on a commercial basis".

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Ferrari doesn't make engines for Alfa Romeo, only Maserati.

 

 

Ferrari is now making engines for Alfa. The first will be for the Giulia Quadrifoglio. I'd imagine they'll try the Ferrari engines as an M or AMG type class in the Alfa lineup.

 

Source? No mention in the prospectus of any such commerical agreement. I have seen the news articles, but note that "Ferrari-derived" is not necessarily the same as "manufactured and sold on a commercial basis".

 

I'm associating similar media reports.

 

"Ferrari-engineered" http://autoweek.com/article/frankfurt-motor-show/listen-designers-discuss-alfa-romeo-giulia-quadrofoglio

"Ferrari-developed" http://www.autocar.co.uk/car-news/motor-shows-frankfurt-motor-show/new-alfa-romeo-giulia-confirmed-september-2016-launch

"developed and built by Ferrari" http://www.motorauthority.com/news/1100063_alfa-romeo-giulia-quadrifoglio-laps-nrburgring-in-739-official

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Ferrari shipped about 7.2k cars in 2014 . I think their long term cap is 10k because above this they will have to comply with normal car companies emission standards co2 etc.  clearly its going to be a while before this and given the noise is part of the wow factor i can't see them turning all electric anytime soon.

 

If i was going to buy a stock where i know the long term volume is capped at 50% ,

i would want at least

 

positive price/mix -  which mgmt expect to be neutral as the mix shifts from V12 to V8

 

or a decent yield - which it doesn't have either

 

its also poorly capitalised.  how many other car companies do you know with net debt ?

 

I am also sceptical about their ability to cut back on R&D via lower spend in F1.  It hasn't won a constructors championship since 2008 - what sports teams are successful by cutting back on spend ?

 

beyond the initial euphoria this is likely to be a CRAPPY investment.

 

i would want it to be in mid $30s range before buying.

 

 

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Tucked in today's amended IPO filing by Ferrari, which included estimated deal terms ahead of Wednesday's scheduled NYSE debut, is 3Q forecasts. The auto maker's net profit is seen rising some 2/3 to EUR93-96M with operating profit up nearly 60% higher amid near-10% revenue growth. Final pricing is poised to occur tomorrow; parent Fiat Chrysler (FCAU) is poised to raise some $1B from selling a nearly 10% stake in Ferrari through the IPO. (eric.sylvers@wsj.com; @EricSylvers)

(END) Dow Jones Newswires

 

Saw this release by Dow Jones on Scottrade today. Thought you guys would find it interesting - a tidbit to get the market more excited pre-IPO. I hope that this ends up being an absolute frenzy.

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